Washington,
October 7, 2011 -
Congressman Posey introduced the Housing Recovery Act which is aimed at relieving the market of foreclosed properties and making homes more affordable. H.R. 1526 early distribution penalties on withdrawals from an IRA, Roth IRA or 401K if the funds are used to purchase a home that has been in foreclosure for a year or more, provided the buyer owns the home for at least 2 years. If the home is sold before the end of the two year period, the owner owes the penalties and interest associated with making a premature distribution from the retirement fund. No new federal program is created and no federal funds are put at risk.